Ah, the arguments spawned during loot and xp distribution are legendary in proportion. The phrase "Why does he get that?" or "That's unfair!" can bring a stalwart game to a halt in a moment. Especially if everyone is playing greedy, care-only-for-yourself rouges, and I seriously don't recommend that. But alas there will always be loot and xp in D&D to be divied up so what are you to do with that one dwarf fighter who hordes what ever the party finds for himself?
There are several ways, many are mentioned in the back of the Player's Strategy Guide. But I've never actually read that whole section in one sitting, it's kind of dry reading, so I'll settle for explaining how my group's party does things.
The first way, for mature players, is to make a contract and have (make) the group sign it. It's simple, fast, and ostensibly effective assuming your group has strong enough will power to up hold it. I'm not going to tell you what to write, I think you can figure it out, and it's different within every group.
The second, this is the one my group uses most often, is to create a list of the items in question and have a short debate about their fate. Why does the wizard need the +2 longsword? Does the dwarf really want those robes of fast travel or is he just going to sell them? Use discretion and try not to over think this thing, as much as I hate to say it, it's a game don't let it ruin your friendships.
The last, is to have a grab fest. Usually this provides the most complaints of the three mentioned here. One player or another winds up gypped and angry. However with some more healthy debate, trade, and commerce this method can be made effective.
That's all for the day, be on the look out for more re-caps and articles, now that school's back in session.
Johnathan Rollen Revard the Bard
